Adobe Inc. (NASDAQ:ADBE) shares are trading lower in premarket hours on Thursday. The decline reflects a broader trend as technology stocks are generally lower today, with the sector experiencing a 0.7% loss.
The stock is caught in a broader sell-off, with the Nasdaq down 1.2%, indicating that external market pressures are influencing its performance.
Apple Competition Adds Pressure
Adobe’s weakness comes days after Apple Inc. (NASDAQ:AAPL) announced Apple Creator Studio on Jan. 13, a new subscription bundle designed for creators across Mac, iPad, and iPhone. The platform combines Final Cut Pro, Logic Pro, Pixelmator Pro, and productivity tools, directly competing with Adobe’s Creative Cloud Pro.
Apple priced the service at $12.99 per month or $129 annually with a one-month trial. Education users can subscribe for $2.99 per month or $29.99 per year. According to The Verge’s report, Adobe’s subscription costs $69.99 per month, while Adobe’s single apps like Photoshop, Premiere, and Illustrator cost $22.99 per month.
Technical Analysis
Currently, Adobe is trading 7.8% below its 20-day simple moving average (SMA) and 13.5% below its 100-day SMA, indicating a bearish short-term trend. Over the past 12 months, shares have decreased by 32.17%, and they are currently positioned closer to their 52-week lows than highs, reflecting ongoing weakness in the stock.
The RSI is at 34.36, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. This combination suggests that while the stock is not in oversold territory, the momentum remains negative.
The combination of neutral RSI and bearish MACD indicates mixed momentum, suggesting that traders should remain cautious.
Earnings & Analyst Outlook
Investors are looking ahead to the next earnings report on Mar. 12.
- EPS Estimate: $5.46 (Up from $5.08 YoY)
- Revenue Estimate: $6.28 billion (Up from $5.71 billion YoY)
- Valuation: P/E of 17.9x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $432.35. Recent analyst moves include:
- UBS: Neutral (Lowers Target to $340.00) (Jan. 26)
- Oppenheimer: Downgraded to Perform (Jan. 13)
- BMO Capital: Downgraded to Market Perform (Lowers Target to $375.00) (Jan. 9)
Valuation Insight: While the stock trades at a fair P/E multiple, the strong consensus and 7% expected earnings growth suggest analysts view this growth as justification for the 41% upside to analyst targets.
- Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Benzinga Edge scorecard for Adobe, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 24.34) — Trading at a steep premium relative to peers.
- Quality: Neutral (Score: 48.84) — Balance sheet remains healthy.
- Momentum: Weak (Score: 7.87) — Stock is underperforming the broader market.
ADBE Price Action: Adobe shares were down 2.41% at $292.36 during premarket trading on Thursday. The stock is trading near its 52-week low of $288.33, according to Benzinga Pro data.
Photo by Mats-Wiklund via Shutterstock
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